Arizona Attorney General Tom Horne recently announced that he will allocate the vast majority of the state's $47 million received from the national mortgage settlement earlier this year to help Phoenix home owners stay above water on their mortgage payments and maintain their properties, instead of having no choice other than foreclosure on the property. The economy is making significant strides toward a full recovery, and the unemployment rate nationwide recently reached hit its lowest point in more than 4 years. However, the housing market was one of the industries most impacted by the recession, and is taking the longest time to bounce back to where it was prior to the housing crash.Banks Help Phoenix Home Owners

The banks that were part of the settlement agreement must pay off the remaining balance to state and federal officials in the next few years, and that influx of money should assist with recovery efforts in all sectors of the economy. As part of the settlement, lending institutions are required to allow measures that can help home owners avoid foreclosure. One of the reasons why short sales are a good alternative is that they do not have the same negative impact on consumer credit ratings as real estate foreclosures. Also, now that banks must allow principal reduction, homeowners who can really afford to stay above water will no longer fret about the risk of impending foreclosure.

The new program will allow families to apply for grants from Arizona's $41 million assistance fund. Bridge loans are another option for families hardest hit by the recession and housing crisis. If home owners are able to keep their properties, and chose the best time to sell, this will have a positive impact on the market overall, since they might also become potential buyers or investors in the future as the rebound continues.

I'd love to show you around the Phoenix metro area so that you can get familiar with your surroundings while visiting Phoenix real estate now listed on my site. Please take a look at information on market trends in my blog, or visit the FAQ page if you'd like more information on Phoenix homes that could easily be part of your future plans.